Global Powers' Economic Competition and Militarization - Essay Sample

Introduction

Historically, high power competition caused by fear of exclusion from power of international economic zones, such as domestic markets. The interferences of the United States and China's policy by the new United States administration is contributing to economic decline (Porter, 2019). Economic completion leads to the militarization of great powers relation through establishing control over local government.

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China is the largest world economy based on purchasing power which has an effect of exchanging rates. It builds its economic growth from low-cost growth exports of types of machinery and equipment. The government spends a lot of funds in export companies to improve the exports. The government also funded the expansion of the railway to support growth (Lake, 2018). It led to massive import of commodities used in the state-owned companies. It built railways ports and launched the one Belt initiative, which is the most significant infrastructure in history, leading to increased economic growth in China.

China's companies manufacture goods for foreign business, such as the United States companies. It purchases its raw materials and export final products to the United States countries leading to massive foreign income, which leads to economic growth. It is the second-largest holder of the United States treasury (Norikor, 2020). The two states have been in great power war which is caused by economic indifferences. For example, the United States president imposed tariffs and quotas to Chinese imported products which forced china to increase their tariffs on agricultural products imported by the United States to China. It has contributed to the economic and trade war in the two states. The United States President accused China of unfair trading practices. The purpose of this paper is to analyze whether china is in high power competition with the United States (Lake, 2018).

China has been in high power competition with the United States caused by unfair trade practices, which has persisted for years. The issues of national security are turning into economic ones. In 2017, the United States announced an alarm of re-entering the great power competition with China in aim to shape the financial status of the states (Blankenship & Derison, 2019). The economic disparities between the United States and China will not reach equilibrium because China seeks to displace and interrupt the military dominance of the western pacific, which is contrary to Japan, which has a military alliance with the United States. They struggle to get who will shape the world economy in the coming century.

The United States has been persuading other friendly countries that America can offers services provided by China. Demand for protection against exports goods from china has been growing over time (Porter, 2019). The United States might experience economic closure which is caused by the political administration of the president who is in the platform of economic nationalism. The administration has imposed tariffs and quotas to imports acquired from China to the United States, such as solar panels, washing machines which have led to trading blocs. It may lead to an economic downturn in the economy of China. The establishment of punitive policies in recent years from the United States administration has threatened the prosperity of China, leading the great competition (Lake, 2018).

China allows economic politics to play a more significant role in the allocation of resources compared to the United States. The China government impose efficient economic policies and practices that are economically disruptive the economy of the United States (Lake, 2018). The United States suffers these policies that aimed to protect China industries and companies from promoting economic growth. They also suffer from currency manipulation by the Chinese government and failure to give appropriate property protections and targeting the United States firms to limit market share. The currency manipulation aimed to make exports from the United States less attractive. It restricts direct capital inflow investment from foreign countries in sectors, such as industries targeted in economic development and growth (Porter, 2019). The business council has identified the investment barriers in industries in china which restricts the United States from investing in China.

China is currently uncompetitive because it has manifested in a state of particular economic interest, to ensure stability, the government is to establish economic policies and economic zones that favour its nationals (Robert, 2019). China has significantly gained from economic openness, while the United States is experiencing commercial closure. China is in great power competition because neither of the two countries can control their protectionist forces.

The banning of sales of computers chips to china shows the economic competition between the China and the United States countries. The ban removed after china pleaded at affine. The ban imposed because the firm failed to comply with the state rules. China lives in fear that the United States will close its trade markets and economic trade zones, which may impact economic development (Porter, 2019). It will lead to economic losses because of china source it raw materials for manufacturing in their firms from the United States.

The Huawei theft of trade scandals fraud is another factor showing that China is in great power competition with the United States. It shows the efforts of China to steal research and technology from American countries (Robert, 2019). It strives to displace the United States investments both manufacturing and scientific research which will lead to the economic downfall. The United States legal systems are not appropriate to combating Chinas exploitations. The administration of the United States has been putting the squeeze to Chinese Huawei telecommunication. It scaled economic competition (Robert, 2019). The United States fears that china will overtake their technological knowledge, which contributes greatly to the economy.

Conclusion

In conclusion, China is in great power competition with the United States because it thrives on being the world largest economy. China generates its income from importing cheap manufacturing equipment's from the United States to manufacture machinery and equipment. The governments fund the projects-the great power competition caused by fear of exclusion from power of international economic zones. The united states have been persuading other countries America can offer products and services that China got to offer.

Various economic reasons show China is in great power competition with the United States, which are the imposing of policies that have economically distorted the economy of the United States. The banning of sales of computers chips to china shows the economic competition. The Huawei theft of trade scandals fraud is another factor showing that China is in great power competition with the United States. It strives to displace the United States investments both manufacturing and scientific research which will lead to the economic downfall.

The United States suffers these policies that are aimed to protect Chinese industries and companies from promoting economic growth. The United States suffers devaluation of the currency by China, which is intended to reduce the value of exports of the United States. The United States legal systems are not appropriate to combating Chinas exploitations which impose challenge in competing with China. China has significantly gained from economic openness while the United States is experiencing economic closure caused by its States economic administration. The two countries should create health economic competition that will promote economic development with minimal political conflicts. The leaders should support the development of industries and manufacturing companies.

References

Blankenship, B. D., & Denison, B. (2019). Is America Prepared for Great-power Competition?. Survival, 61(5), 43-64. https://www.tandfonline.com/doi/abs/10.1080/00396338.2019.1662134?journalCode=tsur20

Lake, D. A. (2018). Economic openness and great power competition: Lessons for China and the United States. The Chinese Journal of International Politics, 11(3), 237-270. https://academic.oup.com/cjip/article/11/3/237/5057992

Novikov, D. (2020). From Asia-Pacific to Greater Eurasia: Regional Projects of Economic Orders and Great Power Competition. In The "Roads" and "Belts" of Eurasia (pp. 355-384). Palgrave Macmillan, Singapore. https://link.springer.com/chapter/10.1007/978-981-15-0856-1_14

Porter, P. (2019). Advice for a dark age: Managing great power competition. The Washington Quarterly, 42(1), 7-25. https://www.tandfonline.com/doi/abs/10.1080/0163660X.2019.1590079?journalCode=rwaq20

Roberts, C. (2019). The BRICS in the Era of Renewed Great Power Competition. Strategic Analysis, 1-18. https://www.tandfonline.com/doi/abs/10.1080/09700161.2019.1672930